"RMD" or "MRD"?


N

nomail1983

Just curious....

The IRS seems to consistently use RMD (Reqd Min Distrib).
For example, see http://www.irs.gov/pub/irs-pdf/i1099r.pdf
and http://www.irs.gov/publications/p590.pdf (although the
latter also has a few references to "min reqd distrib";
klunk!).

Other sources seem to consistently use MRD (Min Reqd
Distrib), including major providers of retirement accounts.
For example, see
http://wps.fidelity.com/401k/about/wdr.htm and
http://www.prudential.com/media/managed/PruPA-finalDB_MRD.pdf

I can appreciate the fact that the order of the words and
the acronym does not affect its meaning; ergo, the order
seems somewhat arbitary.

But I wonder: is it truly random behavior; or did the IRS
used to call it one thing, then call it the other thing
later?
 
Last edited by a moderator:
Ad

Advertisements

S

Stuart A. Bronstein

Just curious....

The IRS seems to consistently use RMD (Reqd Min Distrib).

Other sources seem to consistently use MRD (Min Reqd
Distrib), including major providers of retirement accounts.

But I wonder: is it truly random behavior; or did the IRS
used to call it one thing, then call it the other thing
later?
If you think about it, saying "required" and "minimum" in
the same phrase is a bit of a redundancy. I understand it
was originally Wealth Minimum Distribution, but was changed
because someone didn't like the acronym.

Stu
 
Last edited by a moderator:
D

Drew Edmundson

Just curious....

The IRS seems to consistently use RMD (Reqd Min Distrib).
For example, see http://www.irs.gov/pub/irs-pdf/i1099r.pdf
and http://www.irs.gov/publications/p590.pdf (although the
latter also has a few references to "min reqd distrib";
klunk!).

Other sources seem to consistently use MRD (Min Reqd
Distrib), including major providers of retirement accounts.
For example, see
http://wps.fidelity.com/401k/about/wdr.htm and
http://www.prudential.com/media/managed/PruPA-finalDB_MRD.pdf

I can appreciate the fact that the order of the words and
the acronym does not affect its meaning; ergo, the order
seems somewhat arbitary.

But I wonder: is it truly random behavior; or did the IRS
used to call it one thing, then call it the other thing
later?
Natalie Choate, one of the premier experts in retirement
plan benefits, says in her book that she uses MRD instead of
RMD to avoid confusion with the similar acronym RBD =
required beginning date. If it is good enough for Ms.
Choate then it is good enough for me.

Her web site is http://www.ataxplan.com/.
 
Last edited by a moderator:
Ad

Advertisements

H

Harlan Lunsford

Stuart said:
If you think about it, saying "required" and "minimum" in
the same phrase is a bit of a redundancy. I understand it
was originally Wealth Minimum Distribution, but was changed
because someone didn't like the acronym.
But we THOUGHT there were WMD's in our account! :=)

ChEAr$,
Harlan
 
Last edited by a moderator:

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

More on Individual Retirement Annuity MRD (RMD) 0
MRD and Annuity 0
Underestimated MRD 2
No MRD for 2009 5
RMD 2
IRA MRD question 7
RMD problems 0
missed MRD on IRA 1

Top